The effects of relationship marketing on relationship quality in luxury restaurants

Abstract

The main purpose of this research is to develop a new model to examine the impact of relationship marketing underpinnings namely: customer orientation, expertise, food quality, price fairness and physical environment on the quality of firm-customer relationship as well as the levels of contribution of these underpinnings and explore the effects of relationship quality on customer satisfaction, word-of-mouth and customer loyalty. The new model of relationship quality based on literature was developed and tested empirically among 25 luxury restaurants in Shiraz (Iran). The questions used in this study were taken from the relevant literature which contained 36 questions addressing all the variables. Face-to-face interview of customers was administered in the luxury restaurants for a period of two weeks. A total of 830 usable questionnaires were collected. The findings suggest that relationship quality most influenced by customer orientation (29%), expertise (24%), food quality (20%), price fairness (15%) and physical environment (12%). Beside, this study shows that the most impacts of relationship quality are on customer satisfaction (53%) customer loyalty (36%), word-of-mouth (20%). Also customer loyalty most influenced by customer satisfaction (42%). Customer satisfaction also has an effect on word-of-mouth (33%). Luxury restaurants can build and maintain quality customer relationship through customer orientation, expertise, food quality, price fairness and physical environment. The outcome of the study can help luxury restaurants in developing effective strategies for enhancing the quality of firm-customer relationships. It has been suggested that in order to keep customers satisfied firms should constantly improve overall relationship quality. By comparing the levels of contributions of the relationship marketing underpinnings, luxury restaurants are now able to decide on the level of attention and effort to be assigned to each, based on their importance. Key words: Customer orientation, expertise, food quality, price fairness, physical environment, relationship quality, customer satisfaction, customer loyalty, luxury restaurant.